Purchase by Buyout Firm Values Pizza Chain at $950 Million

Chuck E. Cheese's party pizzas and arcade games will soon be in the hands of one of the world's biggest private-equity firms, after Apollo Global Management LLC announced a deal to buy the owner of the struggling family-restaurant chain.

Apollo agreed to purchase CEC Entertainment Inc., for about $950 million, paying a 12% premium over Wednesday's closing price, the companies said on Thursday. Shares had risen sharply in recent days amid anticipation of a possible deal. In a sign of its desire to avoid shareholders and...